Hi all,
I am a proprietary director of a small business.
I am thinking of loaning my company an amount of money, in order to buy a company car.
My understanding is that I should draw up a written agreement to cover myself should the business ever get wound up, so that I am noted as a creditor.
Can someone please advise, how much, if any, interest I can charge the business for this loan. I understand that any interest charged can be written off for tax purposes by the business, and that I will also be required to advise revenue of any income derived from interest on my own Form 11.
Thank you.
I am a proprietary director of a small business.
I am thinking of loaning my company an amount of money, in order to buy a company car.
My understanding is that I should draw up a written agreement to cover myself should the business ever get wound up, so that I am noted as a creditor.
Can someone please advise, how much, if any, interest I can charge the business for this loan. I understand that any interest charged can be written off for tax purposes by the business, and that I will also be required to advise revenue of any income derived from interest on my own Form 11.
Thank you.